The Chinese leader made an expansive case for globalization as a source of prosperity

Many expressed concerns about the threats of tariffs from the incoming Trump administration

Potential trade war between the world’s two largest economies?

China relies on access to the United States, the largest consumer market on earth, as the landing place for its exports.

The United States depends upon China for a vast range of finished goods

Scenario 1

Your CEO decided to bring the jobs back here in the United States. This means that the price of the iPhone went up $100. A $700 iPhone is now priced at $800. Also this would cost Apple $4.2 billion since outsourcing is cheaper. Since the CEO brought back the manufacturing jobs there will be less people unemployed, less money going to welfare and more people paying taxes. Also because of this decision, Apple would have to pay the 35% corporate income tax.

Scenario 2

Your CEO decided to stay offshoring in China. The price of the iPhone stayed at the normal price for us consumers. There are more unemployed people now here in the United States which means more budget money is going to welfare when it could be going somewhere else. Since the CEO decided to stay in China, they don’t have to pay the 35% corporate tax.